Talking Libor transition with Dan Ko, Eagle Point Credit Management
Cloud 9fin
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CLO Equity Investors Are Pushing for CSAs
Most people are just putting up ARP as the proposed CSA. The downside is that you're paying the primary, which obviously is not very attractive in a high rate environment like today. So there hasn't really been much of a fight there. I think it's been pretty orderly in fact. And so on the asset side of the CLO and the loan, kind of underlying loan market, obviously if the CSA ends up not being 26, then the CLO equity investors who receive kind of the excess spread of the residual from a CLO will be squeezed,. Right? You're paying 26 out to the debt. Got it. Can you give us a bit of background on why
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